Sydney and Melbourne auctions: Homes still selling online but majority switched to private treaty
Saturday was slated to be the largest auction day for Sydney in years and also a super Saturday for Melbourne, but plans were dashed by last week’s coronavirus-linked auction ban that saw many homes switched to private treaty instead.
The small proportion of auctions that did go ahead online recorded steady results despite minor technical glitches as the market continues to adjust to the landscape of virtual sales.
There were originally 1224 auctions scheduled in Sydney, of which 36 per cent were shifted to private sale and 21 per cent to online auctions. The status of a further 27 per cent was unclear.
By evening, Domain had recorded a 39.4 per cent clearance rate from 453 reported results and 595 withdrawn properties.
Melbourne was slated to have 1248 auctions, before 65 per cent were changed to private sale and 6 per cent to online auction, with the status of another 18 per cent unclear.
By evening, Domain had recorded a 30.5 per cent clearance rate from 357 reported results and 769 withdrawn properties.
The number of withdrawn homes is unusually high at the moment due to the public auction ban, and as withdrawn auctions are counted as unsold, this pulls down the clearance rate.
In Sydney, about 139 viewers logged onto their devices to watch a charming three-bedroom house at 5 Park Street, Epping go under the virtual hammer.
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While there was a slight delay to the scheduled auction time because of late bidder registrations and a slow start to the actual bidding process, there was a strong turn out from interested buyers with 10 parties vying for the keys to the property.
An opening bid of $1.17 million kicked off proceedings and the price rose in small increments from the get-go between five of the registered bidders, dragging out the process for 45 minutes.
The auctioneer continued to reassure buyers throughout the process to call the agents if they needed help in bidding online.
But after 54 bids the property sold for $1.32 million to a young couple upsizing from an Eastwood unit.
McGrath Epping selling agent Betty Ockerlander said she brought the auction forward by a fortnight given the strong interest.
“I wasn’t nervous,” Ms Ockerlander said. “It was hard to get started but any auction is hard to get started. I was confident this had good interest. We had 28 private inspections.
“The tricky thing for us is if you had a face-to-face auction you could have guided people more.”
She said her team of agents had to wait until the competition whittled down at the pointy end before they were able to speak to each one over the phone.
“We couldn’t do that with 10 people. We had to wait to narrow it down to the top three bidders.”
Vendors Helen Carswell and Rodney Hart said they were ecstatic with the result.
“Considering the circumstances, it went really well,” Mr Hart said by phone. “There’s bigger things in play than an online auction but we did have our fingers crossed. We weren’t sure how it would work.
“When the first five minutes were quiet it was nerve-wracking because you have no idea what’s going on … but people know this is the process now.”
In Haberfield, the online auction of a two-bedroom semi-detached house at 238 Hawthorne Parade was also slow to start but eventually got underway after a number of pauses in the live stream.
A cheeky $100,000 opening offer was swiftly rejected before it began at $950,000. Three of the six registered buyers threw their hat in the ring, raising the price in $25,000 increments for most of the auction.
It sold for $1.22 million to a young couple from the inner west who outbid a number of interested builders.
Time Realty selling agent Adam Scappatura said he was happy with the result for his first online auction.
“I think it went really well. It gives me confidence to sell that way,” he said. “It’s very transparent. It allows people to bid from their home. It’s just something buyers will need to get used to.”
Mr Scappatura said buyers who have finance ready and are in secure employment will continue to transact and the industry will continue to use the online process.
In Melbourne’s Cheltenham, a two-bedroom unit sold under the hammer to a first-home buyer for $585,000 in an extended online auction via the Gavl platform.
Bidding for the villa at 17/374 Warrigal Road began quickly with an opening offer of $480,000, below the advertised price guide of $520,000 to $570,000.
After optimistic bidder attempts at a $100 or even $1000 rise, a vendor bid of $520,000 was placed by Ray White auctioneer and selling agent Kevin Chokshi.
It was slow going for much of the auction, with a mix of small increments such as $2000 or $5000, as three of the four registered parties threw their hats in the ring.
Proceedings paused at $560,000 for negotiations, before the first bidder upped their offer to $585,000, at which point the home was declared on the market and then sold for its reserve price.
It was comparable to a similar sale of a neighbouring unit, 1/374 Warrigal Road, last week in person for $582,000, Mr Chokshi said.
He said although it took some time to get used to the online auction technology, he hoped to continue using this format now there is evidence that it works.
“No-one wants to be the first,” he said.
“There [are] enough case studies out there … now that people have done it I think a lot of vendors will jump on board.”
The experience of bidding from home might also help buyers participate without the pressure of a physical crowd watching on, he said.
Not all properties secured a sale under the hammer.
In Guildford in Sydney’s west, a four-bedroom house at 14 Linthorne Street started with a vendor bid of $700,000 but passed in at $714,000.
There were three registered bidders but only one active.
LJ Hooker Granville’s Tony Eltakchi said uncertainty was fuelling buyers’ reluctance to bid.
“People prefer to negotiate unless someone is emotionally attached to your property, but then again you’ve got your limits as far as finance are concerned,” he said.
In Drummoyne, a three-bedroom house at 4A Dening Street was also passed in after a vendor bid of $2.3 million.
Despite Ray White auctioneer Peter Matthews reassuring buyers of the process, nobody came forward.
“It’s a new experience for us. But we’ll be on the phone if anybody needs help,” Mr Matthews said to the camera.
After 15 minutes, Mr Matthews passed in the property saying that they would negotiate with all interested parties.
With Elizabeth Redman
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